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    • Selki91
    • By Selki91 5th Oct 17, 3:29 PM
    • 3Posts
    • 1Thanks
    Selki91
    Advice for my savings/debt situation
    • #1
    • 5th Oct 17, 3:29 PM
    Advice for my savings/debt situation 5th Oct 17 at 3:29 PM
    Hello! Hope you are all well!
    I'm in a bit of a tricky situation regarding debts and savings, I've been in touch with a few debt advisors who've said different things so I thought here would be a good place to ask.
    I currently have just under 12k of debt, through a bank loan and a personal loan, both unsercured, I live with my parents and I don't own or finance a car. My situation is this; my girlfriend and I want her to come here and live with with me, renting a place. My income is around £900/month, increasing to around 1000/1100 in the coming months and staying that way. My debt repayments are just under £500/month, and I pay £150 'rent' to my parents. Other expenses and insurance totals to around £70/month. The timeline I'm working to is that my girlfriend will have a visa and be here living by July/august 2018. During that time we'll be saving as much as we can and adding it to a savings account that's currently got over £500. A lot of my wage goes onto repaying debt, and keeping up the minimum payments means it won't be cleared for around 5 years of the same payments. I'm wanting to see if there is a solution that lowers my monthly repayments, and allows me to save the most money as I can so I can start life, really. And my current debt situation is holding me back. I can afford these payments but it means I cannot afford to save for moving out, deposits, rent and visa applications. I'm hoping to add around 350-400/month into the savings.
    The more I read into my situation I think I'm just wishful thinking and I just need to knuckle under and pay off this minimum, and just accept it's gonna hold back my life. If there was a possible solution out there I'd like to explore it, or I guess I can work the hours I'm currently not working and find more work.
    Any help would be appreciated, my bad if this is a ramble!
Page 1
    • EssexHebridean
    • By EssexHebridean 5th Oct 17, 3:50 PM
    • 8,013 Posts
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    EssexHebridean
    • #2
    • 5th Oct 17, 3:50 PM
    • #2
    • 5th Oct 17, 3:50 PM
    I'll be honest, even with reduced payments to your debt I would think your income is going to be very tight to allow you to move out and live elsewhere. What sort of income does your girlfriend expect to command in her profession when she gets here? Will she be paying a higher proportion of nyour monthly outgoings?

    Have a look at some of the SOA's you'll see completed on here to give you an idea of outgoings - as well as rent you can expect to be paying out for electricity and gas, water, council tax, food, contents insurance, some form of TV package and telephone/broadband, travel to and from work, TV license and all manner of other things. These all add up and you'll need to be confident that you can keeop the monthly payments for them.

    Personally I'd say see if you can get a second job to boost your income, and put every spare penny you have currently into paying off the debt - beyond a small emergency fund don;t worry about savings until the debt is gone - then you will be in a better position to start thinking about branching off into a life of your own, with your girlfriend.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£544.67 (17/10/17)
    • Silver Queen
    • By Silver Queen 5th Oct 17, 7:44 PM
    • 153 Posts
    • 823 Thanks
    Silver Queen
    • #3
    • 5th Oct 17, 7:44 PM
    • #3
    • 5th Oct 17, 7:44 PM
    I don't want to be negative but your income is really tiny to be thinking about moving out. You also have to consider the expenses of bringing your girlfriend over here. What kind of visa is she getting? I assume you won't be sponsoring her on your current income. Please remember that there are lots of tricky spots when it comes to visas and there is no guarantee that your girlfriend will always have the right to work. Can you support both yourself and her and pay rent on your income? Just food for thought, and again sorry to be so negative.
    Debt Totals October 17:
    £350 Natwest Credit Card / Now £0 £15,500 Loan from Parents / Now £12,000 £2,000 Overdraft Now £1,000
    • Selki91
    • By Selki91 5th Oct 17, 9:07 PM
    • 3 Posts
    • 1 Thanks
    Selki91
    • #4
    • 5th Oct 17, 9:07 PM
    • #4
    • 5th Oct 17, 9:07 PM
    Thanks for the replies! My wage is getting increased in the next two months to £1100/month at least, and we wouldn't get her over if she didn't have the right to work, and we have accommodation for the first couple months of her being here until she finds work, with a wage around the same (her finding work shouldn't be a problem with her experience). I've rented property before and am aware of bills and costs above rent. I think I worded myself badly, I kinda missed my own point 😊 Under schemes like a Trust Deed or a Debt Arrangement Scheme is it possible to hold savings? By the time we'd like to be together, our savings would be roughly £3000 after visa and money for deposit, less though if I didn't have one of these schemes in place, my contributions to the savings each month would be halved.
    • Bedsit Bob
    • By Bedsit Bob 5th Oct 17, 9:15 PM
    • 9,710 Posts
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    Bedsit Bob
    • #5
    • 5th Oct 17, 9:15 PM
    • #5
    • 5th Oct 17, 9:15 PM
    I'm wanting to see if there is a solution that lowers my monthly repayments, and allows me to save the most money as I can so I can start life, really.
    Originally posted by Selki91
    Unfortunately, there's no way to do both.

    My advice would be to stop the savings, and use all spare cash to pay down the debts ASAP.

    Once the debts are gone, you will be in a far better position to save.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
    • fatbelly
    • By fatbelly 5th Oct 17, 9:59 PM
    • 11,360 Posts
    • 8,523 Thanks
    fatbelly
    • #6
    • 5th Oct 17, 9:59 PM
    • #6
    • 5th Oct 17, 9:59 PM
    Unfortunately, there's no way to do both.

    My advice would be to stop the savings, and use all spare cash to pay down the debts ASAP.

    Once the debts are gone, you will be in a far better position to save.
    Originally posted by Bedsit Bob
    I think that's the only advice an adviser should give.

    Who are these debt advisers who have advised you to save rather than pay debt? And what was their logic for doing so?
    • Happier Me
    • By Happier Me 6th Oct 17, 6:34 AM
    • 372 Posts
    • 799 Thanks
    Happier Me
    • #7
    • 6th Oct 17, 6:34 AM
    • #7
    • 6th Oct 17, 6:34 AM
    If I have read your post correctly you are paying £500 a month to a debt just shy of £12k and it's going to take 5 years to clear? If that is the case, that is a steep interest rate you're paying! Is there any way you can reorganise your debt to reduce the overall cost?

    Personally I would throw as much as you can at the debt to get it gone.
    • pennystretcher
    • By pennystretcher 6th Oct 17, 7:07 AM
    • 296 Posts
    • 1,316 Thanks
    pennystretcher
    • #8
    • 6th Oct 17, 7:07 AM
    • #8
    • 6th Oct 17, 7:07 AM
    I'd leave a minimum emergency amount, maybe £100 and chuck everything else towards the loan that has the highest interest (obv pay minimum on the lower interest loan so that you don't incur penalties).

    Any chance you could ask your parents for temporary reduction in the money you pay them? (with IOU of course)

    Re your possibility to rent - are you on council housing list? If not, get on it as soon as you can - it can take years to get a house through them though ..however if something ever happens and you are responsible for paying the rent on your own again, you are more likely to be able to afford the council rent rather than private.

    And look for more work or a better paying job of course!!

    ps. and why are you paying for your GF's visa application? Isn't she working at the moment? If this is an internet romance, be careful (ask google)...
    MFW Oct 2017 £490 (almost there!!!)
    • Silver Queen
    • By Silver Queen 6th Oct 17, 8:15 AM
    • 153 Posts
    • 823 Thanks
    Silver Queen
    • #9
    • 6th Oct 17, 8:15 AM
    • #9
    • 6th Oct 17, 8:15 AM
    Please also note that her right to work can be taken away at any hiccups, ie when it comes to renewal. Most visas last 2.5 years at the most so I would strongly recommend that you try to create an emergency fund of at least £5k to cover home office fees and lawyer fees. Is there any way that you can up your income to more than the £1100 you're expecting? This is just over minimum wage and not a huge amount of money, although it does depend on what area of the country you're in?

    How did you accrue this debt? You say you don't have a car, did you use this debt for day to day living or do you have an asset to show for it?
    Debt Totals October 17:
    £350 Natwest Credit Card / Now £0 £15,500 Loan from Parents / Now £12,000 £2,000 Overdraft Now £1,000
    • fatbelly
    • By fatbelly 6th Oct 17, 10:06 AM
    • 11,360 Posts
    • 8,523 Thanks
    fatbelly
    Under schemes like a Trust Deed or a Debt Arrangement Scheme is it possible to hold savings? By the time we'd like to be together, our savings would be roughly £3000 after visa and money for deposit, less though if I didn't have one of these schemes in place, my contributions to the savings each month would be halved.
    Originally posted by Selki91
    Sorry, I missed this. Are you in Scotland?

    You're going to need specialist advice from someone like National Debtline Scotland. I'm afraid I have little knowledge of Scottish law
    • Selki91
    • By Selki91 7th Oct 17, 9:22 PM
    • 3 Posts
    • 1 Thanks
    Selki91
    I managed to consolidate my payments, and I got a big boost to my monthly income through work, seems to have resolved the problem without going through any schemes. Thanks for your advice and words everyone!
    • Bedsit Bob
    • By Bedsit Bob 7th Oct 17, 9:38 PM
    • 9,710 Posts
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    Bedsit Bob
    What do you mean by "consolidate my payments"?
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
    • EssexHebridean
    • By EssexHebridean 8th Oct 17, 11:55 AM
    • 8,013 Posts
    • 41,435 Thanks
    EssexHebridean
    What do you mean by "consolidate my payments"?
    Originally posted by Bedsit Bob
    I fear the OP means that they have ignored every bit of advice given on this forum re consolidation and has increased the amount he will have to pay back substantially. Long term pain for short term gratification.

    OP - we'll see you back here in a few years. Good luck with everything until then.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£544.67 (17/10/17)
    • Ilona
    • By Ilona 8th Oct 17, 12:42 PM
    • 1,903 Posts
    • 6,497 Thanks
    Ilona
    I managed to consolidate my payments, and I got a big boost to my monthly income through work, seems to have resolved the problem without going through any schemes. Thanks for your advice and words everyone!
    Originally posted by Selki91
    It's like bashing your head against a brick wall, is there no end to it. You haven't resolved the problem, you've just made it bigger. I do despair.

    ilona
    I love skip diving
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